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tv   Communicators with Steve Case  CSPAN  July 24, 2017 11:20pm-11:50pm EDT

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that's also the story of the business tests. companies rise and fall and cities rise and fall. there's sort of a natural evolution of things. so, exactly who the leaders of the pack are in 20 or 30 years it's hard to predict that some of them will be new brands that didn't exist 20 years ago. we are trying to level the playing field, so they are building these new companies everywhere not just in a few places. it's crazy last year almost 80% of the venture-capital winter just three states, california, new york and massachusetts, 47 states just over 20% of the venture capital. , we need to figure out ways to support entrepreneurs everywhere. we even even solace in the recent election people were basically saying i kind of feel left out and left behind. we need to make sure we have a more inclusive innovation economy and we are backing startups creating jobs
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everywhere not just in a few places like silicon valley. >> i read a statistic, two things. i was surprised washington state wasn't included and then you have another step that is only 15% of the venture capital went to the red states, the 30 states that voted for donald trump. >> what we are essentially doing is backing the entrepreneurs in places like san francisco, new york and boston and doing innovative and disruptive things and some of that disruption is the story and jobs in other parts of the country and that will accelerate artificial intelligence and robotics and cars and trucks and things like that. that's inevitable. technology has always done that. over 90% worked on farms and now it is 2% because technology is made to do farming so these technologies will continue to
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answer. what we need to do is make sure that we are offsetting some of the jobs that are being lost in the middle of the country in the startups that can't create jobs in the middle of the country and bought just back the entrepreneurs and the coast, so there's got to be something that we come together in a bipartisan way to find ways to make sure capital flows were evenly. there's a statistic sobering about 90% of the venture capital went web two men, 10% to women and now it does matter where you happen to live or who you happen to know or what you happen to look like in terms of getting access to capital. we need to level the playing field so everybody everywhere does have a shot at the american dream and the process for backing the startups everywhere and great jobs everywhere in the sense that they are part of the future they are not going to be left behind. >> from your book americans are having distinct conversations
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about technologically driven change. does this go to the digital divide that we've talked about? >> there are parts of the country particularly the rural areas that don't have access to broadband so we have a debate around infrastructure of course we need to invest in better roads and bridges and physical infrastructure but also more of a digital infrastructure things like broadband across the country so we don't have this world where some people have these connections which then are the innovative things to create jobs. he called this in the book the rise on the rest so everyone has access to capital and you don't have these places where essentially all of the wealth and innovation is happening and the rest of the country is dealing with the ones left behind. >> the last several years we've been using the term internet of things and you'd use the term
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internet of things. >> is a concept around the censors at how you can integrate that in your home and office in the city's, things like smart cities but the third wave is broader than that, it is integrated into everything in the way the internet is an industry as a phenomenon that becomes taken for granted like electricity. electricity was a new technology and now we take it for granted. it is just embedded in what we do and the internet is on the path and that is one of the dynamics, but it does have some complicated issues. if the internet is embedded in everything it is fundamental things like how we stay healthy and move around cities and what we eat and things like that. and there's also some responsibilities that come with it and that's the big theme of the book and the reason i wrote the book. i want to make sure that the policymakers understand the dynamics of the third wave so we can get it right. but i also want to make sure that the innovators and
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entrepreneurs know they have to engage in the policymakers to make sure that the rules of the road are structured and some of the issues around privacy and big brother whenever it is connected with about cyber security cybersecurity and cyber terrorism, these are a big deal. they will not have driverless cars on the road or drones in the sky without a regulatory framework, so that's going to be different in the third wave in the second wave. for facebook or insta grandma or open table things like that. the policy wasn't that important. you didn't have to pass muster like the fda or something like that or the financial services kind of making sure that they are certain protections of the dynamic of innovators engaging in the policymakers much more important in the third wave than it was in the second. >> from the book government is going to play an important role and like you said it's different than the first and second.
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what were some of the policy issues dealt with? ..
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>> there is a big failure but to the people i met when i started america online in 1985. it really took a decade before
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anybody knew what we're doing. it was a struggle. we were the first internet company to go public. it was 1992 and we're at it for almost a decade. it almost 2000 customers after a decade. so sometimes revolution happen in a more revolutionary way. you have to have perseverance. in the second way places like facebook was an overnight success. their big companies. because some of the dynamics are so fundamental around healthcare and partnerships become more important policy will become more important. you also need more perseverance. the 3p's, partnership, policy and perseverance weren't so important but they will be important in the third way. that's one of the reasons i wrote the book. i could write a book about the future telling stories about the past to help them from the future including the three-pie
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three-piece. >> what did you develop here in washington? >> in terms of my own journey i was able to learn about a company based here in this area, and they were doing -- is when a lot of people didn't have personal computers but they had the atari game machine. so it was to connect to those atari game machines. but it was a good idea but as we're coming to market the atari game market imploded was so turned out to be unsuccessful. so is here and some others were here as well we started america online here as well. was by accident while he was here. but the d.c. area late a pivotal role in making internet possible because of the fact that dharma, the defense engine see they created the internet was a
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northern virginia and mci and others were in the d.c. area. so they played a significant role in the set first way. the second wave silicon valley played a critical role. the third wave, i'm hoping and expecting it will distribute again and have more regional partnership. and though continue innovation in places like silicon valley, there also be in ovation and the rest of the country. i've been doing these busters for a few years visiting 26 cities and six hours, detroit, pittsburgh, detroit, albuquerque, all kinds of cities that are developing their own startups and building on the expertise they have and try to attract the capital and talent to take the ideas to scale. and in the process create the jobs they so desperately need. >> host: what refining be on the coast? >> guest: it's very encouraging.
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i wish more investors it in new york city or san francisco we get on planes to visit these entrepreneurs in the middle of the country. they have great ideas and great companies. they're starting to scale. some examples are showing breakout potential. in baltimore with underarm or a small company and now it's thousands of employee for ten, 15 or $20 billion. the company in indianapolis called exact target those acquired for $3 billion with 2000 employees. in indianapolis we back to a company called china what which is trying to take displace autoworkers and retrain them to build watches and other products and they are growing like gangbusters. the story of american entrepreneurship is not just about silicon valley. it's all sectors of the economy happening over the country. but we need to make sure they
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are more investors paid attention to the fact of the middle of the country and maybe the agenda of the trump administration ip an area that we could get focused on which is how do you create investment incentives to incite more of that capital going to entrepreneurs? there's legislation that you can do and bipartisan way called the investment opportunity act and it created some cap looking to invest in these emerging rising cities. >> host: the trump administration has announced the american tech to counsel. d.c. that is perhaps a mover? >> i applaud that. i think we need more constructive engagement between people doing innovative things in these third wave sectors. more of that dialogue is important. somehow criticize people in elon musk was criticized for engaging with the president. it's important, i want him in
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the room and make sure that he's explaining to the president the white house team some of the challenges and also the opportunities possible and i hope he's advocating for things that matter whether it's investment centers for entrepreneurs are immigration reform so we can continue with the win with a global battle for talents. anything he's doing to reach out to innovators all over the country is a good thing. i encourage people of interesting ideas and perspectives about what will happen in the future to make sure those perspectives are understood. whether by the president or folks in congress are regulators who are trying to figure out what the rules should be for this third wave. >> host: back to your book, as we move into the third wave, one of the battles i would like to
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see and does the animosity that bruce between silicon valley and washington, d.c. >> guest: it's a problem. there's honestly some exceptions but a lot of people in silicon valley don't want to engage and get frustrated by government and government regulation slows things down. at the same time, when you're dealing with things like healthcare, the drugs we take are the medical devices we use for things like the food systems or energy systems systems, it's not unreasonable that government would have some regulations around those industries. we need to make sure they are the right ones. when you shift from that focus is about software the up and it when it's much more fundamental part of everyday life, there'll be some regulation. we need more of a dialogue and more bridges between the folks in places like silicon valley and the people in the d.c. area. so we figure out how to keep that bad stuff from happening. we don't want drugs to kill people are food to make her kid six or drones crashing and our kids playgrounds. legitimate concerns we have. how do we make sure the united
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states leads in the third way and has the regulatory framework that's friendly to entrepreneurs and innovators. so that innovation can happen here and we can create jobs and economic growth here has a post what happened someplace else. >> host: what vehicle would you use to invest? >> i have an investment company called revolution and two groups called revolution ventures and growth. focuses on earlier stage ventures, we talked about them being speedups not startups. we have a separate -- were travel and we see almost angel investments. i do that personally. >> host: what are some of the companies that revolution has invested in that we have heard of? >> guest: some are still emerging. like zipcar ten years ago which is one of the first sharing economy companies those focused on car sharing and it has grown
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quite rapidly. more recently in the food sector one started called sweet green started a decade ago by three is coming out of georgetown and wanted healthier options. not a casual restaurant concept growing rapidly. in los angeles, chicago and starting to spread around the country. more recently there is a one in chicago called uptake. that's around precision data. the europe called sport radar is moving to the united states. it's a mix of sectors that we focus on not just on the venture and the gross side. the key focus is this rise, how do we make sure that we have access to capital into what we can to shine a spotlight on them hoping it will will attract other investors to pay attention. >> another one is called the case foundation.
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>> guest: my wife runs that started 20 years ago. we invest in people and ideas i can change the world. the issues we focus on change over time to focus on things like the digital divide. with wants an initiative called faces of founders, how do we put a broader more inclusive pace on entrepreneurship where you're back in the whole idea of impact investing. so tobacco companies that don't just focus on profits but also on purpose and impact. that emerges last decade, this impact, into their charter. also using the internet as a way to engage people is a particular focus on millennial's. >> guest: the third wave is part biography as well.
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when you're developing a well, what was your relationship to steve jobs? >> guest: wasn't a huge relationship, when we started he had been fired by apple and was focusing on his next company. when he came back and and the company was acquired by apple and overtime he became the ceo then we engage more and work together on a number of initiatives including earlier work rounded to music. he was one of the iconic entrepreneurs that led the way and led the way the second way. some of the ideas he put in place at apple even though he passed away will be important in third wave. hapless hinted they'll be more focused on things like healthcare. how do they use the approach that advisor on software and services and design to help revolutionize the healthcare system. even though we lost steve some of the insights he had and the perspective that he had will carry on. >> host: there's an incident in the book where the apple corporation puts you in your office in a catatonic state for
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while. >> was the late '80s, the strategy when we get started with aol we had $1 million in a big competitor at the time was prodigy back ibm and sears. they committed $1 billion. we couldn't compete head-to-head. our strategy was through partnership. we had a partnership through ibm and apple and created a venture between our company and apple. i think it was the first time apple lesson there brian name to another company. after your so they decided maybe it wasn' maybe it was a mistake. they wanted to sell it only in apple stores and things like that. one day got a call and they said were out, we want to tear up the contract and don't like the idea of this anymore. or at least the partnership with you. was a scary moment and some of
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the company thought we working to make it. but that forced us to come up with a new brand name. so we called it america online. and the rest is history. instead of being a near disaster was a catalyst that drove the next wave of our growth. >> host: who is elwood edwards? >> guest: he's pretty famous. he is the guy who recorded on our software things like you've got mail and the welcome messages. he was husband of a woman, karen edwards who worked in customer service in the late '80s. overheard me talking about how do we make this internet see more engaging and friendly, not as techy as it was perceived to be 30 years ago. maybe we should add real voices to the software so when you connect to the service it was a welcome and say, you've got mail and be more personal. she overheard me saying that. said my husband elwood does
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radio voiceover work. should you be happy to record something. so i got a post-it note and wrote on a bunch of things and she took it home and the next morning came in with a cassette tape we played it and had the perfect voice. so we headed to the software and a few months later he had one of the most famous voices in america. >> host: what was the toughest year of your life, businesswise? >> guest: will immerse with time warner. i stepped aside as ceo after leaving aol for more than a decade i took a more backseat them being on the board and chair of the company but not running the company day today. it's been well reported that it didn't work so well. the idea of the merger made sense but the execution didn't. i've quoted this from a century ago, vision and execution is hallucination.
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the idea was good but the execution was not. it was frustrating for everybody involved. certainly for me because i had this passion for 90 of these companies and what they could do. but we cannot get out of our own way. eventually i decided to step aside and that's when i started revolution and went back in the garage and started back in the next generation. >> host: less close with darren samuelson and political that you quote in your book. the government doesn't have any single mechanism to address the internet of things are the challenges it is presenting. >> guest: one of the concerns i have which is when the paperback version came out recently i had a new chapter that i called the restart agenda to make sure america could be in the third wave. i don't think there's an appreciation of the challenges and opportunities that present themselves. there is a fragmented approach to regulation that may have
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worked in the past but won't work in the future. it requires more systems approach because of the things involved in the financial were. technology issues but also financial services issues and having a more integrated view of that make sense. that's also true of healthcare and other sectors. we have to take a step back and figure out how to we got the right regulatory framework so this country can lead the way in the third way. i think we can. remind people in d.c. that 250 years ago america itself was a start up. just an idea. we led the way and the agricultural revolution, and the industrial revolution, and the technology revolution, we need to lead the way the next revolution and that will require getting this
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